Statement of Earnings

Transcription

1 audited financial statements Statement of Earnings General Electric Company and consolidated affiliates For the years ended December 31 (In millions; per-share amounts in dollars) REVENUES Sales of goods $ 66,875 $ 60,812 $ 65,067 Sales of services 27,648 39,625 38,710 Other income (Note 17) 5,063 1,151 1,006 GECS earnings from continuing operations GECS revenues from services (Note 18) 47,714 48,005 49,655 Total revenues 147, , ,438 COSTS AND EXPENSES (Note 19) Cost of goods sold 51,455 46,005 50,580 Cost of services sold 16,823 25,708 25,341 Interest and other financial charges 14,545 15,553 17,697 Investment contracts, insurance losses and insurance annuity benefits 2,912 3,012 3,017 Provision for losses on financing receivables (Notes 6 and 23) 4,083 7,176 10,585 Other costs and expenses 37,384 38,054 37,354 Total costs and expenses 127, , ,574 EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 20,098 14,085 9,864 Benefit (provision) for income taxes (Note 14) (5,732) (1,033) 1,142 EARNINGS FROM CONTINUING OPERATIONS 14,366 13,052 11,006 Earnings (loss) from discontinued operations, net of taxes (Note 2) 77 (873) 219 NET EARNINGS 14,443 12,179 11,225 Less net earnings attributable to noncontrolling interests NET EARNINGS ATTRIBUTABLE TO THE COMPANY 14,151 11,644 11,025 Preferred stock dividends declared (1,031) (300) (300) NET EARNINGS ATTRIBUTABLE TO GE COMMON SHAREOWNERS $ 13,120 $ 11,344 $ 10,725 AMOUNTS ATTRIBUTABLE TO THE COMPANY Earnings from continuing operations $ 14,074 $ 12,517 $ 10,806 Earnings (loss) from discontinued operations, net of taxes 77 (873) 219 NET EARNINGS ATTRIBUTABLE TO THE COMPANY $ 14,151 $ 11,644 $ 11,025 PER-SHARE AMOUNTS (Note 20) Earnings from continuing operations Diluted earnings per share $ 1.23 $ 1.14 $ 0.99 Basic earnings per share Net earnings Diluted earnings per share Basic earnings per share DIVIDENDS DECLARED PER SHARE See Note 3 for other-than-temporary impairment amounts. Consolidated Statement of Changes in Shareowners Equity (In millions) CHANGES IN SHAREOWNERS EQUITY (Note 15) GE shareowners equity balance at January 1 $118,936 $117,291 $104,665 Dividends and other transactions with shareowners (10,530) (5,701) (5,049) Other comprehensive income (loss) Investment securities net ,659 Currency translation adjustments net 219 (3,874) 4,135 Cash flow hedges net ,598 Benefit plans net (7,048) 1,079 (1,804) Total other comprehensive income (loss) (6,119) (2,325) 6,588 Increases from net earnings attributable to the Company 14,151 11,644 11,025 Comprehensive income (loss) 8,032 9,319 17,613 Cumulative effect of changes in accounting principles (a) (1,973) 62 Balance at December , , ,291 Noncontrolling interests (b) 1,696 5,262 7,845 Total equity balance at December 31 $118,134 $124,198 $125,136 (a) On January 1, 2010, we adopted amendments to Accounting Standards Codification (ASC) 860, Transfers and Servicing and ASC 810, Consolidation, and recorded a cumulative effect adjustment. See Notes 15 and 24. We adopted amendments to ASC 320, Investments Debt and Equity Securities, and recorded a cumulative effect adjustment to increase retained earnings as of April 1, See Notes 3 and 15. (b) See Note 15 for further information about the changes in noncontrolling interests. 70 GE 2011 ANNUAL REPORT

2 statement of earnings GE (a) GECS $ 67,012 $ 60,345 $ 64,211 $ 148 $ 533 $ ,024 39,875 39,246 5,269 1,285 1,179 6,432 3,023 1,177 48,933 49,348 50, , , ,813 49,081 49,881 51,818 51,605 45,570 49, ,199 25,958 25,878 1,299 1,600 1,478 13,883 14,526 16,870 3,059 3,197 3,193 4,083 7,176 10,585 17,556 16,340 14,841 20,469 22,433 23,051 87,659 89,468 92,083 41,629 47,833 54,507 19,078 15,060 13,730 7,452 2,048 (2,689) (4,839) (2,024) (2,739) (893) 991 3,881 14,239 13,036 10,991 6,559 3,039 1, (873) (868) ,316 12,163 11,210 6,637 2,171 1, ,151 11,644 11,025 6,510 2,155 1,415 (1,031) (300) (300) $ 13,120 $ 11,344 $ 10,725 $ 6,510 $ 2,155 $ 1,415 $ 14,074 $ 12,517 $ 10,806 $ 6,432 $ 3,023 $ 1, (873) (868) 238 $ 14,151 $ 11,644 $ 11,025 $ 6,510 $ 2,155 $ 1,415 (a) Represents the adding together of all affiliated companies except General Electric Capital Services, Inc. (GECS or financial services), which is presented on a one-line basis. See Note 1. In the consolidating data on this page, GE means the basis of consolidation as described in Note 1 to the consolidated financial statements; GECS means General Electric Capital Services, Inc. and all of its affiliates and associated companies. Separate information is shown for GE and GECS. Transactions between GE and GECS have been eliminated from the General Electric Company and consolidated affiliates columns on the prior page. GE 2011 ANNUAL REPORT 71

3 audited financial statements Statement of Financial Position General Electric Company and consolidated affiliates At December 31 (In millions, except share amounts) ASSETS Cash and equivalents $ 84,501 $ 78,943 Investment securities (Note 3) 47,374 43,938 Current receivables (Note 4) 19,531 18,621 Inventories (Note 5) 13,792 11,526 Financing receivables net (Notes 6 and 23) 280, ,012 Other GECS receivables 7,561 7,571 Property, plant and equipment net (Note 7) 65,739 66,212 Investment in GECS Goodwill (Note 8) 72,625 64,388 Other intangible assets net (Note 8) 12,068 9,971 All other assets (Note 9) 111,707 94,299 Assets of businesses held for sale (Note 2) ,887 Assets of discontinued operations (Note 2) 1,255 12,425 Total assets (a) $717,242 $747,793 LIABILITIES AND EQUITY Short-term borrowings (Note 10) $137,611 $117,959 Accounts payable, principally trade accounts 16,400 14,656 Progress collections and price adjustments accrued 10,402 11,142 Dividends payable 1,797 1,563 Other GE current liabilities 14,796 11,396 Non-recourse borrowings of consolidated securitization entities (Note 10) 29,258 30,018 Bank deposits (Note 10) 43,115 37,298 Long-term borrowings (Note 10) 243, ,323 Investment contracts, insurance liabilities and insurance annuity benefits (Note 11) 29,774 29,582 All other liabilities (Note 13) 70,647 55,271 Deferred income taxes (Note 14) (131) 2,753 Liabilities of businesses held for sale (Note 2) ,047 Liabilities of discontinued operations (Note 2) 1,635 2,587 Total liabilities (a) 599, ,595 Preferred stock (0 and 30,000 shares outstanding at year-end 2011 and 2010, respectively) Common stock (10,573,017,000 and 10,615,376,000 shares outstanding at year-end 2011 and 2010, respectively) Accumulated other comprehensive income net (b) Investment securities (30) (636) Currency translation adjustments 133 (86) Cash flow hedges (1,176) (1,280) Benefit plans (22,901) (15,853) Other capital 33,693 36,890 Retained earnings 137, ,137 Less common stock held in treasury (31,769) (31,938) Total GE shareowners equity 116, ,936 Noncontrolling interests (c) 1,696 5,262 Total equity (Notes 15 and 16) 118, ,198 Total liabilities and equity $717,242 $747,793 (a) Our consolidated assets at December 31, 2011 include total assets of $45,514 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets include net financing receivables of $37,120 million and investment securities of $5,320 million. Our consolidated liabilities at December 31, 2011 include liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities include non-recourse borrowings of consolidated securitization entities (CSEs) of $28,758 million. See Note 24. (b) The sum of accumulated other comprehensive income net was $(23,974) million and $(17,855) million at December 31, 2011 and 2010, respectively. (c) Included accumulated other comprehensive income net attributable to noncontrolling interests of $(168) million and $(153) million at December 31, 2011 and 2010, respectively. 72 GE 2011 ANNUAL REPORT

4 statement of financial position GE (a) GECS $ 8,382 $ 19,241 $ 76,702 $ 60, ,359 43,921 11,807 10,383 13,741 11, , ,234 13,390 12,919 14,283 12,444 51,419 53,768 77,110 68,984 45,395 36,880 27,230 27,508 10,522 8,088 1,546 1,883 36,675 17,454 75,618 77,197 33, , ,203 12,375 $217,985 $218,763 $584,536 $605,255 $ 2,184 $ 456 $136,333 $118,797 14,209 11,620 7,239 7,035 11,349 11,841 1,797 1,563 14,796 11,396 29,258 30,018 43,115 37,298 9,405 9, , ,407 30,198 29,993 53,826 37,815 17,328 17,554 (7,183) (4,237) 7,052 6,990 15, ,477 2, ,541 95, , , (30) (636) (33) (639) 133 (86) (399) (1,411) (1,176) (1,280) (1,101) (1,281) (22,901) (15,853) (563) (380) 33,693 36,890 27,627 27, , ,137 51,578 45,068 (31,769) (31,938) 116, ,936 77,110 68,984 1,006 4, , , ,034 77,800 70,148 $217,985 $218,763 $584,536 $605,255 (a) Represents the adding together of all affiliated companies except General Electric Capital Services, Inc. (GECS or financial services), which is presented on a one-line basis. See Note 1. In the consolidating data on this page, GE means the basis of consolidation as described in Note 1 to the consolidated financial statements; GECS means General Electric Capital Services, Inc. and all of its affiliates and associated companies. Separate information is shown for GE and GECS. Transactions between GE and GECS have been eliminated from the General Electric Company and consolidated affiliates columns on the prior page. GE 2011 ANNUAL REPORT 73

5 audited financial statements Statement of Cash Flows General Electric Company and consolidated affiliates For the years ended December 31 (In millions) CASH FLOWS OPERATING ACTIVITIES Net earnings $ 14,443 $ 12,179 $ 11,225 Less net earnings attributable to noncontrolling interests Net earnings attributable to the Company 14,151 11,644 11,025 (Earnings) loss from discontinued operations (77) 873 (219) Adjustments to reconcile net earnings attributable to the Company to cash provided from operating activities Depreciation and amortization of property, plant and equipment 9,185 9,786 10,617 Earnings from continuing operations retained by GECS Deferred income taxes (203) 930 (2,778) Decrease (increase) in GE current receivables (466) (126) 3,273 Decrease (increase) in inventories (1,168) 342 1,101 Increase (decrease) in accounts payable 1, (464) Increase (decrease) in GE progress collections (1,394) (1,177) (500) Provision for losses on GECS financing receivables 4,083 7,176 10,585 All other operating activities 7,255 5,925 (9,828) Cash from (used for) operating activities continuing operations 32,601 36,256 22,812 Cash from (used for) operating activities discontinued operations 758 (132) 1,605 CASH FROM (USED FOR) OPERATING ACTIVITIES 33,359 36,124 24,417 CASH FLOWS INVESTING ACTIVITIES Additions to property, plant and equipment (12,650) (9,800) (8,636) Dispositions of property, plant and equipment 5,896 7,208 6,479 Net decrease (increase) in GECS financing receivables 14,652 21,773 36,665 Proceeds from sales of discontinued operations 8,950 2,510 Proceeds from principal business dispositions 8,877 3,062 9,978 Payments for principal businesses purchased (11,202) (1,212) (7,842) Capital contribution from GE to GECS All other investing activities 6,094 10,249 3,758 Cash from (used for) investing activities continuing operations 20,617 33,790 40,402 Cash from (used for) investing activities discontinued operations (735) (1,354) 1,976 CASH FROM (USED FOR) INVESTING ACTIVITIES 19,882 32,436 42,378 CASH FLOWS FINANCING ACTIVITIES Net increase (decrease) in borrowings (maturities of 90 days or less) 5,951 (1,228) (26,114) Net increase (decrease) in bank deposits 6,748 4,603 (3,784) Newly issued debt (maturities longer than 90 days) 43,847 47,643 82,846 Repayments and other reductions (maturities longer than 90 days) (85,706) (99,933) (83,290) Repayment of preferred stock (3,300) Net dispositions (purchases) of GE shares for treasury (1,456) (1,263) 623 Dividends paid to shareowners (6,458) (4,790) (8,986) Capital contribution from GE to GECS Purchases of subsidiary shares from noncontrolling interests (4,578) (2,633) All other financing activities (1,867) (3,648) (3,204) Cash from (used for) financing activities continuing operations (46,819) (61,249) (41,909) Cash from (used for) financing activities discontinued operations (44) (337) (1,604) CASH FROM (USED FOR) FINANCING ACTIVITIES (46,863) (61,586) (43,513) Effect of exchange rate changes on cash and equivalents (841) (333) 795 Increase (decrease) in cash and equivalents 5,537 6,641 24,077 Cash and equivalents at beginning of year 79,085 72,444 48,367 Cash and equivalents at end of year 84,622 79,085 72,444 Less cash and equivalents of discontinued operations at end of year ,965 Cash and equivalents of continuing operations at end of year $ 84,501 $ 78,943 $ 70,479 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION Cash paid during the year for interest $(15,571) $(17,132) $(19,601) Cash recovered (paid) during the year for income taxes (2,919) (2,671) (2,535) 74 GE 2011 ANNUAL REPORT

6 statement of cash flows GE (a) GECS $ 14,316 $ 12,163 $ 11,210 $ 6,637 $ 2,171 $ 1, ,151 11,644 11,025 6,510 2,155 1,415 (77) 873 (219) (78) 868 (238) 2,068 2,034 2,311 7,117 7,752 8,306 (6,432) (3,023) (1,177) (327) (377) (460) 124 1,307 (2,318) (390) (963) 3,056 (1,122) 409 1, (6) 1,938 1,052 (918) 50 (116) (363) (1,146) (1,158) (257) 4,083 7,176 10,585 3,394 4,255 1,856 3,281 2,487 (11,558) 12,057 14,746 16,405 21,102 21,634 5, (132) 1,603 12,057 14,746 16,407 21,860 21,502 7,426 (2,957) (2,418) (2,429) (9,882) (7,674) (6,445) 5,896 7,208 6,479 14,392 23,061 36,927 8,950 2,510 6,254 1, ,623 1,171 9,088 (11,152) (653) (428) (50) (559) (7,414) (9,500) (384) (550) (198) 7,300 9,947 4,592 (8,239) (1,900) (11,665) 29,229 35,664 43,227 (2) (735) (1,354) 1,978 (8,239) (1,900) (11,667) 28,494 34,310 45,205 1,058 (671) 317 4,393 (652) (27,255) 6,748 4,603 (3,784) 177 9,474 1,883 43,267 37,971 81,073 (270) (2,554) (1,675) (85,436) (97,379) (81,615) (3,300) (1,456) (1,263) 623 (6,458) (4,790) (8,986) 9,500 (4,303) (2,000) (275) (633) (75) (330) (514) (1,792) (3,318) (2,691) (14,627) (2,134) (8,352) (33,095) (59,408) (24,772) (44) (337) (1,604) (14,627) (2,134) (8,352) (33,139) (59,745) (26,376) (50) (125) 176 (791) (208) 619 (10,859) 10,587 (3,436) 16,424 (4,141) 26,874 19,241 8,654 12,090 60,399 64,540 37,666 8,382 19,241 8,654 76,823 60,399 64, ,965 $ 8,382 $ 19,241 $ 8,654 $ 76,702 $ 60,257 $ 62,575 $ (553) $ (731) $ (768) $(15,018) $(16,401) $(18,833) (2,303) (2,775) (3,078) (616) (a) Represents the adding together of all affiliated companies except General Electric Capital Services, Inc. (GECS or financial services), which is presented on a one-line basis. See Note 1. In the consolidating data on this page, GE means the basis of consolidation as described in Note 1 to the consolidated financial statements; GECS means General Electric Capital Services, Inc. and all of its affiliates and associated companies. Separate information is shown for GE and GECS. Transactions between GE and GECS have been eliminated from the General Electric Company and consolidated affiliates columns on the prior page and are discussed in Note 27. GE 2011 ANNUAL REPORT 75